Hormel Foods Corporation (NYSE: HRL) today announced the closing of its acquisition of Applegate Farms, LLC (Applegate), owner of the Applegate® brand.
Our deal to acquire @Applegate has closed! We might even be more excited than @jimcramer | http://t.co/m93VeuIkBN pic.twitter.com/3rWmPQU8PU
— HormelFoodsCorp (@HormelFoodsCorp) July 13, 2015
Applegate® is the No. 1 brand in the natural and organic value-added prepared meats category. As a growing number of consumers choose natural and organic products, this purchase provides Hormel Foods and the Applegate® brand a faster path to expanded offerings in this high-growth category. Applegate will operate autonomously as a stand-alone subsidiary in the company’s Refrigerated Foods segment.
The 2015 annual sales for Applegate are expected to be about $340 million. The purchase price is approximately $775 million. Including estimated deal costs and fair value adjustments, the deal is projected to be neutral to Hormel Foods earnings per share in fiscal 2015 and accretive by approximately 7 to 8 cents per share in fiscal 2016. Hormel Foods expects this acquisition to be accretive to company growth targets.
What's in your hot dog?
Posted by Applegate on Tuesday, May 12, 2015